Vice Minister of Energy Strongly Supports Contract Renegotiations

Vice Minister of Energy Strongly Supports Contract Renegotiations

Theindonesiatoday.com - The newly installed vice minister of energy and mineral resources Widjajono Partowidagdo reaffirmed government's position to renegotiate mining contracts in the country.

Widjajono, a professor from Bandung Institute of Technology (ITB), said renegotiation of contract of works (COW) and Coal Contract of Works (CCOW) has to be conducted pursuant to the new mining and coal law. If contractors declined, government will demand full disclosure of their revenues.

"Don't be defeated by foreigners, but our decision makers shall understand the issues," he said in a dialogue with some journalists at his new office Thursday (Oct 20) as reported by Detik.com.

He said renegotiation is mandated by the new mining and coal law No 4/2009. "So, if the existing royalty is 1% only, it shall follow the new regulation," Widjajono said.

Some companies, including Freeport Indonesia, have reportedly rejected to renegotiate their contracts, including on the royalty issue.

"If they decline, we have to push for a full disclosure, how much they got, and how much the State gets," the vice minister said.

Jero Wacik, the newly installed minister of energy and mineral resources, had earlier expressed his optimism that contractors, including foreigners, would be willing to renegotiate the contracts. Jero, however, said he will waiting 'directions' from President SBY.( haryanto@theindonesiatoday.com)

Terima kasih telah berkunjung di blog  Free Information for FUN